Union Finance minister P Chidambaram, on Friday, cautioned investors that not much should be read into the ongoing “high ride of the stock market.”

“One should not get carried away by the recent high on the Sensex. It is a good indicator but don’t take it as the sole indicator,” said Mr Chidambaram.

Corporate indicator
Speaking at a function after laying the foundation stone of Centre for Nanoscience and Nanotechnology of Mumbai university, he said “’High ride of Sensex is only an indicator of corporate growth and doesn’t imply that overall the economy is on a high.”

He said the Sensex doesn’t take into account the agricultural, health and other sectors of economy but it is only representation of few corporate biggies performance. The Finance minister also lauded efforts of Rerserve Bank of India for containing inflation below four per cent.

“Reserve Bank of India has managed inflation quite exemplary,” Chidambaram  said.

In good shape
Pointing out that high growth in economy is fuelling inflation, the Finance minister said “in near future inflation may rise but will be within reasonable proportion.”

He said fiscal deficit will be brought down under three per cent by the year end.

On interest rates and rupee appreciation, the Finance Minister said, adding that “interest rates are market determined and during high growth period there will be inflationary pressure on the economy.”